| With the rapid development of China's economy,A number of excellent listed companies have been emerging in the A stock market,but at the same time,the stock price often crashes.The collapse of stock price has seriously affected the operation of the company,hit the confidence of investors,and brought great challenges to the stable development of China's stock market.As the first video website company to be listed in China,Jia Yueting,the founder of LETV Information Technology Co.,Ltd.(hereinafter referred to as LETV),soon after the company's listing,has implemented a diversified development strategy with LETV ecology as the core.The construction of LETV ecology attracted the attention of many investors.LETV's share price rose from 20 yuan per share to 179 yuan per share between 2013 and 2015,once becoming the listed company with the highest market value on GEM.Until November 2016,the news that LETV mobile owed 10 billion yuan to suppliers was spread,which opened the prologue of LETV's share price collapse.Research based on the above background,the development of networks can be divided into early,rapid expansion and crisis stage three stages,and combined with its share price movements,four problems in the operation of letv are analyzed,respectively is: low profitability,operating capacity,major shareholders pledge frequently and massive related party transactions.In order to further verify the networks share price is affected by these factors,this paper USES the quarterly data from 2010 to 2019: firstly,14 financial indicators,using principal component analysis to extract the four respectively on behalf of the company profit ability,operation ability,short-term debt paying ability and growth ability of the principal component,then put them with big shareholders pledge ratio,ratio of related party transactions as explained variable regression model with the stock price.The results show that: first,profitability has a significant positive impact on the share price of letv.However,as the profit level of letv's core business is declining year by year,the other sub-ecology has been in a state of loss of different degrees,making letv's overall profitability is weak.Second,the operating capacity has a very significant positive impact on the share price of letv.The operating capacity of letv is low,the company has a large number of accounts receivable is difficult to recover,and many accounts payable can not be repaid on time,thus causing the crisis of capital chain rupture,which is the direct cause of the stock price crash of letv.Third,the pledge proportion of major shareholders has a significant negative impact on the share price of letv.The pledge of major shareholders increases the debt pressure of the company and brings about the agency problem between major shareholders and other shareholders,making the pledge of equity become an important means for major shareholders to empty the internal resources of letv.Fourth,the related party transaction ratio has a very significant positive impact on the share price of letv.Letv made a lot of false income and profit through the related party transaction,which confused the investors and laid a hidden danger for the company's operation.After the outbreak of the crisis,the negative effects of related party transactions were concentrated,which aggravated the decline of the company's share price.Finally,based on the above research results,this paper puts forward several suggestions for LETV and other listed companies,including bankruptcy reorganization to restore profitability,improve the management level of operational capacity,strengthen the supervision of major shareholders' pledge and standardize the management of connected transactions.I hope these suggestions can help to reduce the occurrence of stock price collapse,promote the healthy development of listed companies,and maintain the stable operation of China's securities market. |
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